Hungary: Inflation ticks up in August to the highest rate in eight months
September 12, 2014
In August, consumer prices fell 0.2% over the previous month, which contrasted the 0.2% increase observed in the previous month. The fall reflected that a decrease in prices for food, clothing and footwear more than offset an increase in prices for services.
Annual inflation inched up from 0.1% in July to 0.2% in August, thus reaching the highest rate in eight months. The figure met market expectations. As a consequence, annual inflation still remains well below the Central Bank’s target of 3.0%, with a tolerance margin of plus/minus 1.0%. The core inflation index, which excludes volatile items such as fresh food and fuel, rose 0.1% over the previous month (July: +0.2 month-on-month). Meanwhile, annual core inflation inched down from 2.5% in July to 2.4% in August, which marked the lowest rate in four months.